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A comment on Does QE Cause Wealth Inequality?. Parent comment

Re:Does QE Cause Wealth Inequality? by bigwavedave on Tuesday November 16, 2021 @03:25PM (#29245942)
"For the first six months you own it, the Series I bond we sell from November 2021 through April 2022 earns interest at an annual rate of 7.12 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation."

As someone who's never bought bonds before, how do I know the 7.12% won't change after the 6 months of the locked rate to the 0.00% and whatever pittance they decide to toss my way in an attempt to account for inflation?

Sincere question, I don't know anything about anything.

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Re:Does QE Cause Wealth Inequality? by criddell on Tuesday November 16, 2021 @03:34PM (#29246035)
7.12% is about as low as it's been:

https://treasurydirect.gov/indiv/research/indepth/ibonds/res...

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Re:Does QE Cause Wealth Inequality? by medvezhenok on Thursday November 18, 2021 @08:30PM (#29272788)
That's not what that chart is saying.

That's the coupon rate paid by a bond bought at that time (in the late 90s the bonds paid a real return of 3%, which when added to the current 7.12% inflation rate gives a nominal return of 10.12% for the next 6-months).

The rate of those bonds was 3.5% just a month ago, and historically averages around 2%.

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